Anglo American Production Report Q2 , 2021

Source: RNS
RNS Number : 7442F
Anglo American PLC
20 July 2021
 

Click on, or paste the following link into your web browser, to view the associated PDF document.

http://www.rns-pdf.londonstockexchange.com/rns/7442F_1-2021-7-19.pdf

 

 

20 July 2021

Anglo American plc

Production Report for the second quarter ended 30 June 2021

Mark Cutifani, Chief Executive of Anglo American, said: "We have delivered a solid operational performance supported by comprehensive Covid-19 measures to help safeguard the lives and livelihoods of our workforce and host communities. We have generally maintained operating levels at approximately 95%(1) of normal capacity and, as a consequence, production increased by 20%(2) compared to Q2 of last year, with planned higher rough diamond production at De Beers, as well as strong plant performance at our Los Bronces copper operation in Chile and higher throughput at our Mogalakwena platinum group metals mine in South Africa.

"We also successfully completed the demerger of our thermal coal operations in South Africa and announced the sale of our minority interest in Cerrejón in Colombia, marking the last stage of our transition from thermal coal operations, ahead of schedule. Our portfolio and growth investments are increasingly focused on those future-enabling metals and minerals that are critical to decarbonising energy and transport and to meeting consumers' growing needs, from luxury to everyday."

 

Q2 highlights

•  Completed the demerger of the South Africa thermal coal operations.

•  Announced the sale of our 33% interest in the Cerrejón thermal coal mine, subject to regulatory approvals.

•  Rough diamond production increased by 134%, reflecting planned higher production in response to the ongoing consumer demand recovery.

•  Platinum Group Metals (PGMs) production increased by 59%, with Mogalakwena production increasing by 11%, reflecting the relatively lower impact of Covid-19 lockdowns compared to Q2 2020. Strong refined output reflected stable performance from the ACP Phase A unit.

•  Iron ore production increased by 6%, driven primarily by Kumba, reflecting the lower impact of Covid-19 lockdowns compared to Q2 2020.

•  Copper production increased by 2% due to strong plant performance at Los Bronces.

•  At our longwall metallurgical coal operations, mining restarted at Moranbah at the beginning of June and development work at Grosvenor continues to progress, with restart expected towards the end of the year.

Production

Q2 2021

Q2 2020

% vs. Q2 2020

H1 2021

H1 2020

% vs. H1 2020

 

 

Diamonds (Mct)(3)

134%

 

 

Copper (kt)(4)

2%

 

 

Platinum group metals (koz)(5)

59%

28%

 

 

Iron ore (Mt)(6)

6%

 

 

Metallurgical coal (Mt)

(25)%

 

 

Nickel (kt)(7)

(2)%

 

 

Manganese ore (kt)

18%

 

 

Thermal coal (Mt)(8)

4.3

4.4

(1)%

9.3

10.5

(12)%

 

 

(1)   Production capacity excludes Moranbah and Grosvenor.

(2)   Copper equivalent production is normalised to reflect the demerger of the South Africa thermal coal operations and the closure of the manganese alloy operations and excludes the impact of the Grosvenor suspension and announced sale of Cerrejón. Including the impact of Grosvenor and Cerrejón, copper equivalent production increased by 20% compared to Q2 2020.

(3)   De Beers Group production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.

(4)   Contained metal basis. Reflects copper production from the Copper business unit only (excludes copper production from the Platinum Group Metals business unit).

(5)   Produced ounces of metal in concentrate. 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold). Reflects own mine production and purchase of concentrate.

(6)   Wet basis.

(7)   Reflects nickel production from the Nickel business unit only (excludes nickel production from the Platinum Group Metals business unit).

(8)   Reflects export primary production, secondary production sold into export markets and production sold domestically at export parity pricing from South Africa until the demerger of the South Africa thermal coal operations effective on 4 June 2021, and attributable export production (33.3%) from Colombia (Cerrejón).

 

PRODUCTION OUTLOOK SUMMARY

2021 production guidance is summarised as follows:

 

 

2021 production guidance(1)

 

Diamonds(2)

32-33 Mct

 

(previously 32-34 Mct)

 

Copper(3)

650-680 kt

 

(previously 640-680 kt)

 

Platinum Group Metals(4)

4.2-4.4 Moz

 

(previously 4.2-4.6 Moz)

 

Iron ore(5)

64.5-66.5 Mt

 

(previously 64.5-67.5 Mt)

 

Metallurgical coal(6)

14-16 Mt

 
 

Nickel(7)

42-44 kt

 
 

(1)   Subject to the extent of further Covid-19 related disruption.

(2)   Subject to trading conditions and on a 100% basis except for the Gahcho Kué joint venture, which is on an attributable 51% basis.

(3)   Copper business unit only. On a contained-metal basis.

(4)   5E + gold produced metal in concentrate ounces. Includes own mined production (~65%) and purchased concentrate volumes (~35%). The split of metals differs for own mined and purchased concentrate, refer to FY2019 results presentation slide 30 for indicative split of own mined volumes. FY2021 metal in concentrate production is expected to be 1.9-2.0 million ounces of platinum, 1.35-1.40 million ounces of palladium and 0.95-1.0 million ounces of other PGMs and gold.

(5)   Wet basis.

(6)   Excludes thermal coal production in Australia.

(7)   Nickel business unit only.

 

REALISED PRICES

 

H1 2021

H1 2020

H1 2021 vs H1 2020

De Beers

 

 

 

Consolidated average realised price ($/ct)(1)

135

119

13 

%

Average price index(2)

109

109

%

Copper (USc/lb)(3)

460

250

84 

%

Platinum Group Metals

 

 

 

Platinum (US$/oz)

1,170

857

37 

%

Palladium (US$/oz)

2,641

2,141

23 

%

Rhodium (US$/oz)

24,377

8,985

171 

%

Basket price (US$/PGM oz)(4)

2,884

1,956

47 

%

Iron Ore - FOB prices(5)

210

90

133 

%

Kumba Export (US$/wmt)(6)

216

91

137 

%

Minas-Rio (US$/wmt)(7)

200

88

127 

%

Metallurgical Coal

 

 

 

HCC (US$/t)(8)

117

123

(5)

%

PCI (US$/t)(8)

103

98

%

Nickel (USc/lb)

721

502

44 

%

Thermal Coal

 

 

 

Australia (US$/t)(8)

87

58

50 

%

South Africa - Export (US$/t)(9)

77

61

26 

%

  Colombia (US$/t)

65

46

41 

%

(1)   Consolidated average realised price based on 100% selling value post-aggregation.

(2)   Average of the De Beers price index for the Sights within the 6-month period. The De Beers price index is relative to 100 as at December 2006. While the average H1 price index remained broadly flat year-on-year, the closing index increased by 14% compared to the start of 2021.

(3)   The realised price for Copper excludes third party sales volumes.

(4)   Price for a basket of goods per PGM oz. The dollar basket price is the net sales revenue from all metals (PGMs, base metals and other metals), excluding trading, per 5E + gold sold ounces (own mined and purchased concentrate).

(5)   Average realised total iron ore price is a weighted average of the Kumba and Minas-Rio realised prices. The comparative has been restated as Kumba previously reported on a dry basis.

(6)   Average realised export basket price (FOB Saldanha) (wet basis as product is shipped with ~1.6% moisture). The comparative has been restated as Kumba previously reported on a dry basis. The realised prices differ to Kumba's standalone results due to sales to other Group companies. Average realised export basket price (FOB Saldanha) on a dry basis is $220/t (H1 2020: $93/t) and this was higher than the dry 62% Fe benchmark price of $166/t (FOB South Africa, adjusted for freight).

(7)   Average realised export basket price (FOB Açu) (wet basis as product is shipped with ~9% moisture).

(8)   Weighted average coal sales price achieved at managed operations.

(9)   Weighted average export thermal coal price achieved until the demerger of the South Africa thermal coal operations effective on 4 June 2021.

 

DE BEERS

De Beers(1) (000 carats)

H1

H1

2021

2020

Botswana

5,727

1,825

214 

%

4,960

15 

%

10,687

7,469

43 

%

Namibia

338

358

(6)

%

338

%

676

869

(22)

%

South Africa

1,276

555

130 

%

1,161

10 

%

2,437

1,306

87 

%

Canada

899

789

14 

%

710

27 

%

1,609

1,633

(1)

%

Total carats recovered

8,240

3,527

134 

%

7,169

15 

%

15,409

11,277

37 

%

Rough diamond production increased by 134% to 8.2 million carats, reflecting planned higher production to meet stronger demand for rough diamonds, as well as the impact of Covid-19 lockdowns across southern Africa in Q2 2020.

 

In Botswana, production increased by 214% to 5.7 million carats, reflecting the impact of the Covid-19 lockdown in Q2 2020.

 

Namibia production decreased by 6% to 0.3 million carats, primarily due to planned maintenance of the Mafuta vessel which completed in the quarter and another vessel remaining demobilised.

 

South Africa production increased by 130% to 1.3 million carats, due to planned treatment of higher grade ore from the final cut of the Venetia open pit, as well as the impact of the Covid-19 lockdown in Q2 2020.

 

Production in Canada increased by 14% to 0.9 million carats, primarily reflecting the impact of the Covid-19 measures implemented in Q2 2020.

 

Consumer demand for polished diamonds continued to recover, leading to strong demand for rough diamonds from midstream cutting and polishing centres, despite the impact on capacity from the severe Covid-19 wave in India during April and May. Rough diamond sales totalled 7.3 million carats(2) (6.5 million carats on a consolidated basis)(2)(3) from two Sights, reflecting the impact of the reduced Indian midstream capacity on Sight 4, compared with 0.3 million carats (0.2 million carats on a consolidated basis)(3) from two Sights in Q2 2020, and 13.5 million carats (12.7 million carats on a consolidated basis)(3) from three Sights in Q1 2021.

 

The H1 2021 consolidated average realised price increased by 13% to $135/ct (H1 2020: $119/ct), driven by an increased proportion of higher value rough diamonds sold. While the average price index remained broadly flat, the closing index increased by 14% compared to the start of 2021, reflecting tightness in inventories across the diamond value chain as well as positive consumer demand for polished diamonds.

 

Full Year Guidance

Production guidance(1) is tightened to 32-33 million carats (100% basis) (previously 32-34 million carats (100% basis)), subject to trading conditions and the extent of any further Covid-19 related disruptions.

 

(1)   De Beers Group production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.

(2)   Due to ongoing travel restrictions and the timing of Sight 3 at the end of Q1 2021, the Sight was extended beyond its normal week-long duration. As a result, 0.2 Mct (total sales volume, 100% and consolidated basis) from Sight 3 were recognised in Q2 2021.

(3)   Consolidated sales volumes exclude De Beers Group's JV partners' 50% proportionate share of sales to entities outside De Beers Group from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).

De Beers(1)

Q2

Q1

Q4

Q3

Q2

H1

H1

2021

2021

2020

2020

2020

2021

2020

Carats recovered (000 carats)

 

 

 

 

 

 

 

 

 

 

100% basis (unless stated)

 

 

 

 

 

 

 

 

 

 

Jwaneng

3,169

3,091

1,452

1,748

1,138

178 

%

%

6,260

4,338

44 

%

Orapa(2)

2,558

1,869

2,811

3,079

687

272 

%

37 

%

4,427

3,131

41 

%

Botswana

5,727

4,960

4,263

4,827

1,825

214 

%

15 

%

10,687

7,469

43 

%

 

 

 

 

 

 

 

 

 

 

 

Debmarine Namibia

249

249

256

147

305

(18)

%

%

498

722

(31)

%

Namdeb (land operations)

89

89

81

95

53

68 

%

%

178

147

21 

%

Namibia

338

338

337

242

358

(6)

%

%

676

869

(22)

%

 

 

 

 

 

 

 

 

 

 

 

Venetia

1,276

1,161

1,287

1,178

555

130 

%

10 

%

2,437

1,306

87 

%

South Africa

1,276

1,161

1,287

1,178

555

130 

%

10 

%

2,437

1,306

87 

%

 

 

 

 

 

 

 

 

 

 

 

Gahcho Kué (51% basis)

899

710

776

915

789

14 

%

27 

%

1,609

1,633

(1)

%

Canada

899

710

776

915

789

14 

%

27 

%

1,609

1,633

(1)

%

Total carats recovered

8,240

7,169

6,663

7,162

3,527

134 

%

15 

%

15,409

11,277

37 

%

Sales volumes

 

 

 

 

 

 

 

 

 

 

Total sales volume (100)% (Mct)(3)

7.3(4)

13.5(4)

6.9

6.6

0.3

n/a

(46)

%

20.8

9.2

126 

%

Consolidated sales volume (Mct)(3)

6.5(4)

12.7(4)

6.4

6.5

0.2

n/a

(49)

%

19.2

8.5

126 

%

Number of Sights (sales cycles)

2(4)

3(4)

2

3

2(5)

 

 

5(4)

4(5)

 

(1)   De Beers Group production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.

(2)   Orapa constitutes the Orapa Regime which includes Orapa, Letlhakane and Damtshaa.

(3)   Consolidated sales volumes exclude De Beers Group's JV partners' 50% proportionate share of sales to entities outside De Beers Group from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).

(4)   Due to ongoing travel restrictions and the timing of Sight 3 at the end of Q1 2021, the Sight event was extended beyond its normal week-long duration. As a result, 0.2 Mct (total sales volume, 100% and consolidated basis) from Sight 3 were recognised in Q2 2021.

(5)   Sight 3 in Q2 2020 was cancelled due to Covid-19 related restrictions on the movement of people and product.

 

COPPER

Copper(1) (tonnes)

Q2

Q2

Q1

H1

H1

2021

2020

2021

2021

2020

Los Bronces

84,400

80,700

%

78,800

%

163,200

149,400

%

Collahuasi (44% share)

74,300

75,700

(2)

%

71,600

%

145,900

142,200

%

El Soldado

11,000

10,400

%

9,900

11 

%

20,900

22,300

(6)

%

Total Copper

169,700

166,800

%

160,300

%

330,000

313,900

%

(1)   Copper production shown on a contained metal basis. Reflects copper production from the Copper business unit only (excludes copper production from the Platinum Group Metals business unit).

 

Copper production increased by 2% to 169,700 tonnes, driven by strong performance at Los Bronces, partly offset by lower grade at Collahuasi.

 

Production from Los Bronces increased by 5% to 84,400 tonnes, with higher water availability as a result of water-management initiatives resulting in a 32% increase in plant throughput, partially offset by planned lower grade (0.68% vs 0.85%).

 

At Collahuasi, attributable production decreased by 2% to 74,300 tonnes, due to slightly lower grade (1.29% vs 1.31%) and copper recovery (91.3% vs 92.0%).

 

Production from El Soldado increased by 6% to 11,000 tonnes.

 

Sales volumes in H1 2021 were impacted by temporary port closures in Chile due to heavy tidal swells limiting vessel availability in the last two weeks of June. The H1 2021 average realised price of 460c/lb includes 181,072 tonnes of provisionally priced copper at an average price of 425c/lb.

 

Full Year Guidance

Production guidance is tightened to 650,000-680,000 tonnes (previously 640,000-680,000 tonnes), subject to water availability and the extent of any Covid-19 related disruption.
 

Copper(1)

Q2

Q1

Q4

Q3

Q2

H1

H1

2021

2021

2020

2020

2020

2021

2020

Los Bronces mine(2)

 

 

 

 

 

 

 

 

 

 

Ore mined

11,403,100

10,812,400

11,546,300

8,414,600

9,237,400

23 

%

%

22,215,500

19,250,400

15 

%

Ore processed - Sulphide

13,168,200

11,520,400

13,031,300

11,956,800

9,987,200

32 

%

14 

%

24,688,600

17,046,700

45 

%

Ore grade processed -

Sulphide (% TCu)(3)

0.68

0.72

0.77

0.73

0.85

(20)

%

(6)

%

0.70

0.90

(22)

%

Production - Copper cathode

9,800

9,900

10,200

9,300

9,900

(1)

%

(1)

%

19,700

19,800

(1)

%

Production - Copper in concentrate

74,600

68,900

85,700

70,100

70,800

%

%

143,500

129,600

11 

%

Total production

84,400

78,800

95,900

79,400

80,700

%

%

163,200

149,400

%

Collahuasi 100% basis

(Anglo American share 44%)

 

 

 

 

 

 

 

 

 

 

Ore mined

26,943,000

21,220,300

18,110,000

16,412,100

18,035,100

49 

%

27 

%

48,163,300

37,437,100

29 

%

Ore processed - Sulphide

14,334,300

14,441,600

12,928,700

14,612,300

14,192,800

%

(1)

%

28,775,900

28,290,600

%

Ore grade processed -

Sulphide (% TCu)(3)

1.29

1.26

1.18

1.27

1.31

(2)

%

%

1.27

1.26

%

Production - Copper in concentrate

168,800

162,800

134,600

171,500

172,000

(2)

%

%

331,600

323,000

%

Anglo American's 44% share of copper production for Collahuasi

74,300

71,600

59,200

75,500

75,700

(2)

%

%

145,900

142,200

%

El Soldado mine(2)

 

 

 

 

 

 

 

 

 

 

Ore mined

1,796,600

1,708,600

1,982,000

1,885,100

1,378,100

30 

%

%

3,505,200

3,293,400

%

Ore processed - Sulphide

1,834,800

1,755,100

1,902,500

1,788,700

1,771,600

%

%

3,589,900

3,230,500

11 

%

Ore grade processed -

Sulphide (% TCu)(3)

0.75

0.70

0.84

0.78

0.76

(1)

%

%

0.73

0.87

(16)

%

Production - Copper in concentrate

11,000

9,900

12,700

10,800

10,400

%

11 

%

20,900

22,300

(6)

%

Chagres Smelter(2)

 

 

 

 

 

 

 

 

 

 

Ore smelted(4)

25,400

23,200

29,800

26,700

24,300

%

%

48,600

55,100

(12)

%

Production

24,600

22,600

29,000

26,000

23,700

%

%

47,200

53,700

(12)

%

Total copper production(5)

169,700

160,300

167,800

165,700

166,800

%

%

330,000

313,900

%

Total payable copper production

162,600

154,300

161,200

159,200

160,300

%

%

316,900

302,000

%

Total sales volumes

157,700

147,700

178,600

176,100

154,200

%

%

305,400

293,800

%

Total payable sales volumes

149,200

143,200

172,600

167,900

148,200

%

%

292,400

282,500

%

Third party sales(6)

82,800

74,000

133,400

112,600

130,800

(37)

%

12 

%

156,800

207,100

(24)

%

(1)   Excludes copper production from the Platinum Group Metals business unit. Units shown are tonnes unless stated otherwise.

(2)   Anglo American ownership interest of Los Bronces, El Soldado and the Chagres Smelter is 50.1%. Production is stated at 100% as Anglo American consolidates these operations.

(3)   TCu = total copper.

(4)   Copper contained basis.

(5)   Total copper production includes Anglo American's 44% interest in Collahuasi.

(6)   Relates to sales of copper not produced by Anglo American operations.

 

PLATINUM GROUP METALS (PGMs)

PGMs 000 oz(1)

Q2

Q2

Q1

H1

H1

2021

2020

2021

2021

2020

Metal in concentrate production

1,057.9

665.1

59%

1,021.2

4%

2,079.1

1,620.0

28%

Own mined(2)

709.2

430.2

65%

694.9

2%

1,404.1

1,084.8

29%

Purchase of concentrate (POC)(3)

348.7

234.9

48%

326.3

7%

675.0

535.2

26%

Refined production(4)

1,353.7

407.0

233%

973.0

39%

2,326.7

1,019.2

128%

(1)   Ounces refer to troy ounces. PGMs is 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold).

(2)   Includes managed operations and 50% of joint operation production.

(3)   Includes the other 50% of joint operation production, as well as the purchase of concentrate from third parties.

(4)   Refined production excludes toll refined material.

 

Metal in concentrate production

Own mined production increased by 65% to 709,200 ounces, following a strong recovery from the Covid-19 lockdowns in Q2 2020. Production at Mogalakwena increased by 11%, reflecting higher throughput. Production at Amandelbult and the joint ventures increased by 270% to 185,300 ounces and 112% to 107,800 ounces, respectively, as a result of the year-on-year recovery from Covid-19.

 

Purchase of concentrate increased by 48% to 348,700 ounces, also largely due to the year-on-year recovery from Covid-19.

 

Refined production

Refined production increased by 233% to 1,353,700 ounces, reflecting strong performance from the ACP Phase A unit following its successful start-up in November 2020. The ACP Phase B rebuild is on schedule for completion in H2 2021.

 

Sales

Sales volumes increased by 162%, driven by higher refined production.

 

The H1 2021 average realised basket price of $2,884/PGM ounce reflects strong prices, particularly for rhodium and the minor metals, partly offset by higher than normal sales volumes of lower priced ruthenium.

 

Full Year Guidance

Production guidance (metal in concentrate) is tightened to 4.2-4.4 million ounces(1) (previously 4.2-4.6 million ounces). Refined production guidance is tightened to 4.8-5.0 million ounces(2) (previously 4.6-5.0 million ounces), subject to the impact of Eskom load-shedding. Both are subject to the extent of further Covid-19 related disruption.

 

(1)   Metal in concentrate production is expected to be 1.9-2.0 million ounces of platinum, 1.35-1.40 million ounces of palladium and 0.95-1.0 million ounces of other PGMs and gold.

(2)   Refined production is expected to be 2.2-2.3 million ounces of platinum, 1.55-1.60 million ounces of palladium and 1.05-1.1 million ounces of other PGMs and gold.

 

  

 

 

 

M&C PGMs production (000 oz)(1)

1,057.9

1,021.2

1,076.1

1,112.8

665.1

59 

%

%

2,079.1

1,620.0

28 

%

Own mined

709.2

694.9

716.9

747.3

430.2

65 

%

%

1,404.1

1,084.8

29 

%

Mogalakwena

308.3

329.1

306.7

315.0

277.6

11 

%

(6)

%

637.4

559.9

14 

%

Amandelbult

185.3

156.0

185.5

204.8

50.1

270 

%

19 

%

341.3

217.8

57 

%

Unki

47.9

50.9

55.8

60.0

31.3

53 

%

(6)

%

98.8

80.3

23 

%

Mototolo

59.9

58.6

69.8

72.2

20.4

194 

%

%

118.5

81.6

45 

%

Joint ventures(2)

107.8

100.3

99.1

95.3

50.8

112 

%

%

208.1

145.2

43 

%

Purchase of concentrate

348.7

326.3

359.2

365.5

234.9

48 

%

%

675.0

535.2

26 

%

Joint ventures(2)

107.8

100.3

99.0

95.3

50.8

112 

%

%

208.1

145.2

43 

%

Third parties

240.9

226.0

260.2

270.2

184.1

31 

%

%

466.9

390.0

20 

%

Refined PGMs production (000 oz)(1)(3)

1,353.7

973.0

673.1

1,020.7

407.0

233 

%

39 

%

2,326.7

1,019.2

128 

%

By metal:

 

 

 

 

 

 

 

 

 

 

Platinum

625.7

457.8

296.4

503.8

160.6

290 

%

37 

%

1,083.5

400.9

170 

%

Palladium

427.5

317.0

206.8

354.1

147.4

190 

%

35 

%

744.5

344.5

116 

%

Rhodium

94.3

63.0

47.1

48.9

30.6

208 

%

50 

%

157.3

77.9

102 

%

Other PGMs and gold

206.2

135.2

122.8

113.9

68.4

201 

%

53 

%

341.4

195.9

74 

%

Nickel (tonnes)

5,800

4,800

3,700

5,000

2,000

190 

%

21 

%

10,600

5,100

108 

%

Tolled material (000 oz)(4)

153.8

175.9

146.5

129.4

96.0

60 

%

(13)

%

329.7

227.6

45 

%

PGMs sales from production (000 oz)(1)(5)

1,437.1

1,131.1

754.3

884.9

548.0

162 

%

27 

%

2,568.2

1,229.3

109 

%

Third party PGMs sales (000 oz)(1)(6)

116.1

221.5

370.8

341.0

210.5

(45)

%

(48)

%

337.6

459.1

(26)

%

4E head grade (g/t milled)(7)

3.48

3.54

3.67

3.65

3.44

%

(2)

%

3.51

3.44

%

(1)   Ounces refer to troy ounces. PGMs is 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold).

(2)   The joint operations are Modikwa and Kroondal. Platinum owns 50% of these operations, which is presented under 'Own mined' production, and purchases the remaining 50% of production, which is presented under 'Purchase of concentrate'.

(3)   Refined production excludes toll material.

(4)   Ounces refer to troy ounces. Tolled volume measured as the combined content of: platinum, palladium, rhodium and gold, reflecting the tolling agreements in place.

(5)   PGMs sales volumes from production are generally ~65% own mined and ~35% purchases of concentrate though this may vary from quarter to quarter.

(6)   Relates to sales of metal not produced by Anglo American operations.

(7)   4E: the grade measured as the combined content of: platinum, palladium, rhodium and gold, excludes tolled material. Minor metals are excluded due to variability.

 

IRON ORE

Iron Ore (000 t)

Q2

Q2

Q1

H1

H1

2021

2020

2021

2021

2020

Iron Ore(1)

15,695

14,813

%

16,173

(3)

%

31,869

30,842

%

Kumba(2)

9,818

8,615

14 

%

10,555

(7)

%

20,372

18,219

12 

%

Minas-Rio(3)

5,878

6,198

(5)

%

5,619

%

11,496

12,622

(9)

%

(1)   Total iron ore is the sum of Kumba and Minas-Rio.

(2)   Volumes are reported as wet metric tonnes. Product is shipped with ~1.6% moisture.

(3)   Volumes are reported as wet metric tonnes. Product is shipped with ~9% moisture.

 

 

Iron ore production increased by 6% to 15.7 million tonnes, driven by a 14% increase at Kumba, partly offset by a 5% decrease at Minas-Rio.

 

Kumba - Total production increased by 14% to 9.8 million tonnes reflecting the effect of Covid-19 lockdowns in Q2 2020, and despite reduced Q2 2021 production in response to high stock levels at the mines following rail constraints in Q1 2021. Production at Sishen increased by 17% to 6.9 million tonnes, while Kolomela production increased by 7% to 2.9 million tonnes.

 

Export sales increased by 14% to 9.4 million tonnes(1), reflecting the increase in production.

 

The H1 2021 average lump:fines ratio in the Kumba product was 69:31 (H1 2020: 65:35), while the Fe content averaged 64.1% (H1 2020: 64.4%).

 

The H1 2021 average realised price of $216/tonne (FOB South Africa, wet basis) was higher than the 62% Fe benchmark price of $163/tonne (FOB South Africa, adjusted for freight and moisture) due to the lump and Fe content quality premiums that the Kumba products attract in the market, as well as timing on provisionally priced volumes.

 

Minas-Rio - Production decreased by 5% to 5.9 million tonnes due to further unplanned maintenance at the beneficiation plant that is now complete, with the majority of the volumes expected to be recovered during the remainder of the year.

 

The H1 2021 average realised price of $200/tonne (FOB Brazil, wet basis) was higher than the Metal Bulletin 66 price of $165/tonne (FOB Brazil, adjusted for freight and moisture), reflecting the premium quality of the product, including higher (~67%) Fe content, and timing on provisionally priced volumes.

Full Year Guidance

Iron ore production guidance (wet basis) is tightened to 64.5-66.5 million tonnes (previously 64.5-67.5 million tonnes) (Kumba 40.5-41.5 million tonnes; Minas-Rio 24-25 million tonnes (previously 24-26 million tonnes)), subject to the extent of further Covid-19 related disruption, and rail performance at Kumba.

 

(1)   Sales volumes are reported on a wet basis and differ to Kumba's standalone results due to sales to other Group companies.

 

 

 

Iron Ore (tonnes)

Q2

Q1

Q4

Q3

Q2

H1

H1

2021

2021

2020

2020

2020

2021

2020

Iron Ore production(1)

15,695,300

16,173,400

16,183,200

14,677,400

14,812,500

%

(3)

%

31,868,700

30,841,500

%

Iron Ore sales(1)

14,973,600

15,716,400

16,600,200

15,861,400

14,828,700

%

(5)

%

30,690,000

31,779,500

(3)

%

 

 

 

 

 

 

 

 

 

 

 

Kumba production

9,817,600

10,554,700

9,717,600

9,683,600

8,614,500

14 

%

(7)

%

20,372,300

18,219,400

12 

%

Lump

6,723,700

7,156,100

6,589,100

6,592,200

5,803,900

16 

%

(6)

%

13,879,800

12,297,000

13 

%

Fines

3,093,900

3,398,600

3,128,500

3,091,400

2,810,600

10 

%

(9)

%

6,492,500

5,922,400

10 

%

Kumba production by mine

 

 

 

 

 

 

 

 

 

 

Sishen

6,876,800

7,071,200

6,583,400

6,615,300

5,877,400

17 

%

(3)

%

13,948,000

12,565,300

11 

%

Kolomela

2,940,800

3,483,500

3,134,200

3,068,300

2,737,100

%

(16)

%

6,424,300

5,654,100

14 

%

Kumba sales volumes(2)

9,406,000

10,230,200

10,285,700

11,076,800

8,217,100

14 

%

(8)

%

19,636,200

19,086,700

%

Export iron ore(2)

9,406,000

10,123,100

10,285,700

11,076,800

8,217,100

14 

%

(7)

%

19,529,100

18,729,000

%

Domestic iron ore

-

107,100

-

-

-

n/a

n/a

107,100

357,700

(70)

%

 

 

 

 

 

 

 

 

 

 

 

Minas-Rio production

 

 

 

 

 

 

 

 

 

 

Pellet feed (wet basis)

5,877,700

5,618,700

6,465,600

4,993,800

6,198,000

(5)

%

%

11,496,400

12,622,100

(9)

%

Minas-Rio sales volumes

 

 

 

 

 

 

 

 

 

 

Export - pellet feed (wet basis)

5,567,600

5,486,200

6,314,500

4,784,600

6,611,600

(16)

%

%

11,053,800

12,692,800

(13)

%

(1)   Total iron ore is the sum of Kumba and Minas-Rio and reported in wet metric tonnes. Kumba product is shipped with ~1.6% moisture and Minas-Rio product is shipped with ~9% moisture.

(2)   Sales volumes differ to Kumba's standalone results due to sales to other Group companies.

 

METALLURGICAL COAL

Metallurgical Coal(1) (000 t)

Q2

Q2

Q1

H1

H1

2021

2020

2021

2021

2020

Metallurgical Coal (Australia)

2,969

3,977

(25)

%

3,279

(9)

%

6,247

7,803

(20)

%

                       

(1)   Anglo American's attributable share of production.

 

Export metallurgical coal production was 3.0 million tonnes, down 25% due to the continued suspension of operations at Grosvenor following the underground incident in May 2020, as well as the suspension of Moranbah for most of the quarter. Open cut operations are returning towards pre-Covid-19 production levels having been scaled back at Dawson and Capcoal since mid-2020 in response to reduced demand for the products.

 

Development activities at Grosvenor began in early June as part of the mine's staged approach to restarting longwall mining operations towards the end of 2021.

 

Longwall mining operations restarted at Moranbah on 3 June 2021, following the suspension from 21 February 2021 in response to elevated gas levels.

 

As a result of the lower volumes, the H1 2021 unit cost is expected to be circa $124/tonne.

 

The ratio of hard coking coal production to PCI/semi-soft coking coal was 78:22, lower than in Q2 2020 (81:19), due to a lower proportion of product coming from the underground operations.

 

The H1 2021 average realised price for hard coking coal was $117/tonne, lower than the benchmark price of $132/tonne as sales consisted of a lower proportion of premium quality hard coking coal from Moranbah and Grosvenor.

 

Full Year Guidance

Production guidance for metallurgical coal is unchanged at 14-16 million tonnes, subject to the extent of any Covid-19 related disruption.
 

Coal, by product (tonnes)(1)

Q2

Q1

Q4

Q3

Q2

H1

H1

2021

2021

2020

2020

2020

2021

2020

Production volumes

 

 

 

 

 

 

 

 

 

 

Metallurgical Coal

2,968,600

3,278,500

4,182,400

4,836,100

3,977,200

(25)

%

(9)

%

6,247,100

7,803,400

(20)

%

Hard Coking Coal

2,319,500

2,511,200

3,221,200

3,969,100

3,221,500

(28)

%

(8)

%

4,830,700

6,233,700

(23)

%

PCI / SSCC

649,100

767,300

961,200

867,000

755,700

(14)

%

(15)

%

1,416,400

1,569,700

(10)

%

Export thermal Coal

519,000

372,400

562,300

587,000

468,000

11 

%

39 

%

891,400

871,300

%

Sales volumes

 

 

 

 

 

 

 

 

 

 

Metallurgical Coal

2,856,300

3,112,300

4,318,300

4,818,000

3,901,300

(27)

%

(8)

%

5,968,600

7,751,700

(23)

%

Hard Coking Coal

2,246,200

2,462,100

3,536,900

4,130,000

3,305,000

(32)

%

(9)

%

4,708,300

6,172,400

(24)

%

PCI / SSCC

610,100

650,200

781,400

688,000

596,300

%

(6)

%

1,260,300

1,579,300

(20)

%

Export thermal Coal

572,000

492,000

725,800

500,100

651,700

(12)

%

16 

%

1,064,000

1,058,900

%

(1)  Anglo American's attributable share of production.

 

Metallurgical coal, by operation (tonnes)(1)

Q2

Q1

Q4

Q3

Q2

H1

H1

2021

2021

2020

2020

2020

2021

2020

Metallurgical Coal

2,968,600

3,278,500

4,182,400

4,836,100

3,977,200

(25)

%

(9)

%

6,247,100

7,803,400

(20)

%

Moranbah

56,600

595,100

1,209,200

2,008,500

761,800

(93)

%

(90)

%

651,700

1,212,600

(46)

%

Grosvenor

-

-

-

4,500

560,900

n/a

n/a

-

1,101,800

n/a

Capcoal (incl. Grasstree)

1,554,100

1,346,600

1,680,900

1,328,800

1,221,900

27 

%

15 

%

2,900,700

2,605,200

11 

%

Dawson

569,800

600,600

461,200

588,300

638,400

(11)

%

(5)

%

1,170,400

1,379,600

(15)

%

Jellinbah

788,100

736,200

831,100

906,000

794,200

(1)

%

%

1,524,300

1,504,200

%

(1)  Anglo American's attributable share of production.

 

NICKEL

Nickel (tonnes)

Q2

Q2

Q1

H1

H1

2021

2020

2021

2021

2020

Nickel

10,600

10,800

(2)

%

10,100

%

20,700

21,700

(5)

%

                       

Nickel production decreased by 2% to 10,600 tonnes, reflecting planned lower ore grade.

 

Full Year Guidance

Production guidance is unchanged at 42,000-44,000 tonnes, subject to the extent of further Covid-19 related disruption.

Nickel (tonnes)

Q2

Q1

Q4

Q3

Q2

H1

H1

2021

2021

2020

2020

2020

2021

2020

Barro Alto

 

 

 

 

 

 

 

 

 

 

Ore mined

976,200

628,500

1,001,600

1,712,200

1,166,200

(16)

%

55 

%

1,604,700

1,484,200

%

Ore processed

641,500

616,700

628,000

536,600

625,900

%

%

1,258,200

1,236,000

%

Ore grade processed - %Ni

1.56

1.53

1.71

1.72

1.60

(3)

%

%

1.55

1.60

(3)

%

Production

8,800

8,200

9,500

8,000

8,800

%

%

17,000

17,500

(3)

%

Codemin

 

 

 

 

 

 

 

 

 

 

Ore mined

-

-

-

3,200

-

n/a

n/a

-

-

n/a

Ore processed

136,400

136,600

147,600

142,100

145,800

(6)

%

%

273,000

291,600

(6)

%

Ore grade processed - %Ni

1.52

1.51

1.71

1.71

1.59

(4)

%

%

1.52

1.61

(6)

%

Production

1,800

1,900

2,200

2,200

2,000

(10)

%

(5)

%

3,700

4,200

(12)

%

Total Nickel production(1)

10,600

10,100

11,700

10,200

10,800

(2)

%

%

20,700

21,700

(5)

%

Sales volumes

9,800

10,200

11,700

10,900

9,800

%

(4)

%

20,000

20,400

(2)

%

(1)   Excludes nickel production from the Platinum Group Metals business unit.

 

MANGANESE

Manganese (000 t)

Q2

Q2

Q1

H1

H1

2021

2020

2021

2021

2020

Manganese ore(1)

941

796

18 

%

905

%

1,845

1,639

13 

%

Manganese alloys(1)(2)

-

23

n/a

-

n/a

-

48

n/a

                       

(1)    Saleable production.

(2)    Production includes medium carbon ferro-manganese.

Manganese ore production increased by 18% to 940,500 tonnes, reflecting the impact of Covid-19 lockdowns in South Africa in Q2 2020.

 

There was no manganese alloy production as the South African smelter has been on care and maintenance since the Covid-19 lockdown. The TEMCO smelter in Australia was sold at the start of 2021.

 

Manganese (tonnes)

Q2

Q1

Q4

Q3

Q2

H1

H1

2021

2021

2020

2020

2020

2021

2020

Samancor production

 

 

 

 

 

 

 

 

 

 

Manganese ore(1)

940,500

904,500

942,400

938,700

796,000

18 

%

%

1,845,000

1,638,900

13 

%

Manganese alloys(1)(2)

-

-

14,600

18,300

23,200

n/a

n/a

-

47,600

n/a

Samancor sales volumes

 

 

 

 

 

 

 

 

 

 

Manganese ore

980,200

878,200

936,800

976,200

810,700

21 

%

12 

%

1,858,400

1,616,100

15 

%

Manganese alloys

-

670

24,500

22,700

23,400

n/a

n/a

670

56,200

n/a

(1)    Saleable production.

(2)    Production includes medium carbon ferro-manganese.

THERMAL COAL

Thermal Coal(1) (000 t)

Q2

Q2

Q1

H1

H1

2021

2020

2021

2021

2020

Export Thermal Coal (South Africa)(2)

2,534

3,588

(29)

%

3,149

(20)

%

5,682

7,783

(27)

%

Export Thermal Coal (Colombia)(3)

1,784

767

132 

%

1,795

(1)

%

3,579

2,745

30 

%

(1)   Anglo American's attributable share of production.

(2)   Includes export primary production, secondary production sold into export markets and production sold domestically at export parity pricing until the demerger of the South Africa thermal coal operations effective 4 June 2021.

(3)   Anglo American's attributable share of Cerrejón production is 33.3%. The sale of Anglo American's interest in Cerrejón is expected to complete in H1 2022, subject to regulatory approvals. The agreement is effective 31 December 2020 and, therefore, economic benefits of production from 1 January 2021 onwards will not accrue to Anglo American.

 

Thermal Coal, South Africa - Export thermal coal production decreased by 29% to 2.5 million tonnes, primarily due to the demerger of the South Africa thermal coal operations on 4 June 2021.

 

Thermal Coal, Colombia - Attributable export thermal coal production more than doubled to 1.8 million tonnes, reflecting the impact of Covid-19 lockdowns in Q2 2020.

 

The H1 2021 weighted average realised price for export thermal coal from South Africa and Colombia was $72/tonne (South Africa: $77/tonne; Colombia: $65/tonne). This was 16% lower than the weighted average quoted FOB price, largely due to energy content adjustments relative to the industry benchmark.

Full Year Guidance

Following the demerger of the South Africa thermal coal operations on 4 June 2021, no further production will be reported by Anglo American. Product purchased from Thungela under the offtake agreement will be reported as third party.

 

The sale of Anglo American's 33% interest in Cerrejón is expected to complete in H1 2022, subject to regulatory approvals. The agreement is effective on the 31 December 2020 and, therefore, economic benefits of production from 1 January 2021 onwards will not accrue to Anglo American.
 

Thermal Coal (tonnes)(1)

Q2

Q1

Q4

Q3

Q2

H1

H1

2021

2021

2020

2020

2020

2021

2020

Production volumes

 

 

 

 

 

 

 

 

 

 

Thermal Coal

6,742,700

8,080,400

8,059,500

9,575,400

8,293,000

(19)

%

(17)

%

14,823,100

16,973,400

(13)

%

Export - South Africa(2)

2,533,600

3,148,500

4,085,000

4,595,400

3,587,600

(29)

%

(20)

%

5,682,100

7,782,700

(27)

%

Export - Colombia(3)

1,784,000

1,794,900

347,000

1,037,700

767,400

132 

%

(1)

%

3,578,900

2,745,300

30 

%

Domestic - South Africa

2,425,100

3,137,000

3,627,500

3,942,300

3,938,000

(38)

%

(23)

%

5,562,100

6,445,400

(14)

%

Sales volumes

 

 

 

 

 

 

 

 

 

 

Thermal Coal

9,743,900

10,701,500

10,086,000

10,854,100

10,502,900

(7)

%

(9)

%

20,445,400

21,892,000

(7)

%

Export - South Africa(2)

2,250,100

3,085,200

4,872,100

4,512,700

3,264,300

(31)

%

(27)

%

5,335,300

7,188,300

(26)

%

Export - Colombia(3)

1,618,700

1,746,300

369,900

993,800

1,142,500

42 

%

(7)

%

3,365,000

3,170,600

%

Domestic - South Africa

2,325,300

3,023,800

2,994,600

3,407,700

3,558,700

(35)

%

(23)

%

5,349,100

5,967,100

(10)

%

Third party sales

3,549,800

2,846,200

1,849,400

1,939,900

2,537,400

40 

%

25 

%

6,396,000

5,566,000

15 

%

(1)   Anglo American's attributable share of production.

(2)   Includes export primary production, secondary production sold into export markets and production sold domestically at export parity pricing until the demerger of the South Africa thermal coal operations effective 4 June 2021.

(3)   Anglo American's attributable share of Cerrejón production is 33.3%. The sale of Anglo American's interest in Cerrejón is expected to complete in H1 2022, subject to regulatory approvals. The agreement is effective 31 December 2020 and, therefore, economic benefits of production and sales, from 1 January 2021 onwards will not accrue to Anglo American.

Production, by operation (tonnes)(1)

Q2

Q1

Q4

Q3

Q2

H1

H1

2021

2021

2020

2020

2020

2021

2020

Thermal Coal - South Africa(2)

4,958,700

6,285,500

7,712,500

8,537,700

7,525,600

(34)

%

(21)

%

11,244,200

14,228,100

(21)

%

Goedehoop

1,320,500

1,704,000

1,907,500

1,816,600

1,192,500

11 

%

(23)

%

3,024,500

2,399,900

26 

%

Greenside

632,700

768,200

938,000

1,199,000

1,179,100

(46)

%

(18)

%

1,400,900

2,357,000

(41)

%

Zibulo

841,000

1,204,800

1,099,900

1,429,900

1,331,100

(37)

%

(30)

%

2,045,800

2,622,800

(22)

%

Khwezela

633,500

529,900

1,444,200

1,735,100

1,383,700

(54)

%

20 

%

1,163,400

3,003,100

(61)

%

Mafube

282,600

446,400

491,300

503,100

339,200

(17)

%

(37)

%

729,000

823,800

(12)

%

Other(3)

1,248,400

1,632,200

1,831,600

1,854,000

2,100,000

(41)

%

(24)

%

2,880,600

3,021,500

(5)

%

Thermal Coal - Colombia (Cerrejón)(4)

1,784,000

1,794,900

347,000

1,037,700

767,400

132 

%

(1)

%

3,578,900

2,745,300

30 

%

(1)   Anglo American's attributable share of production.

(2)   Export and domestic production until the demerger of the South Africa thermal coal operations effective on 4 June 2021; Isibonelo and Rietvlei produce exclusively domestic volumes.

(3)   Other includes Isibonelo and Rietvlei.

(4)   Anglo American's attributable share of Cerrejón production is 33.3%. The sale of Anglo American's interest in Cerrejón is expected to complete in H1 2022, subject to regulatory approvals. The agreement is effective 31 December 2020 and, therefore, economic benefits of production from 1 January 2021 onwards will not accrue to Anglo American.

EXPLORATION AND EVALUATION

Exploration and evaluation expenditure increased by 56% to $67 million. Exploration expenditure increased by 39% to $25 million driven by increased drilling at Sakatti (Copper/PGMs) in Finland and Iron Ore, reflecting the impact of Covid-19 in Q2 2020. Evaluation expenditure increased by 68% to $42 million, with increased spend at Metallurgical Coal, Sakatti (Copper/PGMs) and Diamonds.

NOTES

•     This Production Report for the quarter ended 30 June 2021 is unaudited.

•     Production figures are sometimes more precise than the rounded numbers shown in this Production Report.

•     Copper equivalent production shows changes in underlying production volume. It is calculated by expressing each product's volume as revenue, subsequently converting the revenue into copper equivalent units by dividing by the copper price (per tonne). Long-term forecast prices are used, in order that period-on-period comparisons exclude any impact for movements in price.

•     Please refer to page 18 for information on forward-looking statements.

 

In this document, references to "Anglo American", the "Anglo American Group", the "Group", "we", "us", and "our" are to refer to either Anglo American plc and its subsidiaries and/or those who work for them generally, or where it is not necessary to refer to a particular entity, entities or persons. The use of those generic terms herein is for convenience only, and is in no way indicative of how the Anglo American Group or any entity within it is structured, managed or controlled. Anglo American subsidiaries, and their management, are responsible for their own day-to-day operations, including but not limited to securing and maintaining all relevant licences and permits, operational adaptation and implementation of Group policies, management, training and any applicable local grievance mechanisms. Anglo American produces group-wide policies and procedures to ensure best uniform practices and standardisation across the Anglo American Group but is not responsible for the day to day implementation of such policies. Such policies and procedures constitute prescribed minimum standards only. Group operating subsidiaries are responsible for adapting those policies and procedures to reflect local conditions where appropriate, and for implementation, oversight and monitoring within their specific businesses.

  

 

For further information, please contact:

Media

Investors

UK

James Wyatt-Tilby

james.wyatt-tilby@angloamerican.com

Tel: +44 (0)20 7968 8759

 

Marcelo Esquivel

marcelo.esquivel@angloamerican.com

Tel: +44 (0)20 7968 8891

 

Katie Ryall

katie.ryall@angloamerican.com

Tel: +44 (0)20 7968 8935

 

South Africa

Nevashnee Naicker

nevashnee.naicker@angloamerican.com

Tel: +27 (0)71 164 5719

 

Sibusiso Tshabalala

sibusiso.tshabalala@angloamerican.com

Tel: +27 (0)11 638 2175

 

Nomonde Ndwalaza

nomonde.ndwalaza@angloamerican.com

Tel: +27 (0)11 638 0228

UK

Paul Galloway

paul.galloway@angloamerican.com

Tel: +44 (0)20 7968 8718

 

Emma Waterworth

emma.waterworth@angloamerican.com

Tel: +44 (0)20 7968 8574

 

Michelle Jarman

michelle.jarman@angloamerican.com

Tel: +44 (0)20 7968 1494

 

 

Notes to editors:

Anglo American is a leading global mining company and our products are the essential ingredients in almost every aspect of modern life. Our portfolio of world-class competitive operations, with a broad range of future development options, provides many of the future-enabling metals and minerals for a cleaner, greener, more sustainable world and that meet the fast growing every day demands of billions of consumers. With our people at the heart of our business, we use innovative practices and the latest technologies to discover new resources and to mine, process, move and market our products to our customers - safely and sustainably.

 

As a responsible producer of diamonds (through De Beers), copper, platinum group metals, premium quality iron ore and metallurgical coal for steelmaking, and nickel - with crop nutrients in development - we are committed to being carbon neutral across our operations by 2040. More broadly, our Sustainable Mining Plan commits us to a series of stretching goals to ensure we work towards a healthy environment, creating thriving communities and building trust as a corporate leader. We work together with our business partners and diverse stakeholders to unlock enduring value from precious natural resources for the benefit of the communities and countries in which we operate, for society as a whole, and for our shareholders. Anglo American is re-imagining mining to improve people's lives.

Forward-looking statements and third-party information:

This announcement includes forward-looking statements. All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding Anglo American's financial position, business, acquisition and divestment strategy, dividend policy, plans and objectives of management for future operations (including development plans and objectives relating to Anglo American's products, production forecasts and Ore Reserves and Mineral Resource estimates) and environmental, social and corporate governance goals and aspirations, are forward-looking statements. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Anglo American, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Such forward-looking statements are based on numerous assumptions regarding Anglo American's present and future business strategies and the environment in which Anglo American will operate in the future. Important factors that could cause Anglo American's actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, levels of actual production during any period, levels of global demand and commodity market prices, mineral resource exploration and development capabilities, recovery rates and other operational capabilities, safety, health or environmental incidents, the effects of global pandemics and outbreaks of infectious diseases, the outcome of litigation or regulatory proceedings, the availability of mining and processing equipment, the ability to produce and transport products profitably, the availability of transportation infrastructure, the impact of foreign currency exchange rates on market prices and operating costs, the availability of sufficient credit, the effects of inflation, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by courts, regulators and governmental authorities such as in relation to permitting or forcing closure of mines and ceasing of operations or maintenance of Anglo American's assets and changes in taxation or safety, health, environmental or other types of regulation in the countries where Anglo American operates, conflicts over land and resource ownership rights and such other risk factors identified in Anglo American's most recent Annual Report. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements.

These forward-looking statements speak only as of the date of this announcement. Anglo American expressly disclaims any obligation or undertaking (except as required by applicable law, the City Code on Takeovers and Mergers, the UK Listing Rules, the Disclosure and Transparency Rules of the Financial Conduct Authority, the Listings Requirements of the securities exchange of the JSE Limited in South Africa, the SIX Swiss Exchange, the Botswana Stock Exchange and the Namibian Stock Exchange and any other applicable regulations) to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in Anglo American's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Nothing in this announcement should be interpreted to mean that future earnings per share of Anglo American will necessarily match or exceed its historical published earnings per share.

Certain statistical and other information about Anglo American included in this announcement is sourced from publicly available third-party sources. As such, it has not been independently verified and presents the views of those third parties, though these may not necessarily correspond to the views held by Anglo American and Anglo American expressly disclaims any responsibility for, or liability in respect of, such information.

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